I have been waiting for this since early Feb and it was worth the wait. On Feb 3, I recommended buying ZION July 21/25 call spread for $1.20. Here is the link: ZION Call Spread. The stock has been slowly running, now trading above $24. The call spread has expanded to $2.30. That's 91% return.
I am closing half position and booking the gains. With the stock trading at $24.20 as of this writing, the spread is $0.80 away from going completely in-the-money. This is a $4.00 spread that has $1.70 still to go. I will wait until the spread expands further to $3.20 or higher before closing the remaining half.
Booyah!
About Me
- Fahad Khalid
- Chicago, IL, United States
- I have Masters in Business (Accounting and Finance 2003) from Michigan State University. I have been trading the market since 1998. Prior to picking up trading as a full-time career in 2008, I was a management consultant at Alvarez & Marsal and Conway MacKenzie for four years. I provided turnaround, crisis management and restructuring services to financially distressed firms. Prior to working in turnaround, I worked in Audit & Assurance at Deloitte & Touche for two years. Trading in the market has always remained my side business ever since I started college. 90% of the time, I trade through options. I love volatility skews and positive Theta plays. While I make a lot of directional bets, in general my favorites are to take advantage of high implied volatilities through calendar or butterfly spreads and vertical credit spreads. I never buy straight calls or puts and I do a lot of exotic multi-leg option trades.
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